Blockchain is the backbone of crypto asset trading platforms , but how much further can its usage go in the broader financial services industry ?
BLOCKCHAIN
Blockchain is the backbone of crypto asset trading platforms , but how much further can its usage go in the broader financial services industry ?
ON
IN ICES
WRITTEN BY : LOUIS THOMPSETT
Blockchain has been somewhat of a quiet revolutionary . Essentially a distributed database containing an ever-growing list of ordered records – blocks – its introduction as the enabler of crypto asset trading heralded the beginning of decentralised finance .
But , while blockchain and cryptocurrencies may appear synonymous with one another , the truth is blockchain ’ s reach is far more extensive – and can be used to monitor supply chains , create digital IDs and enable data sharing .
So , while blockchain ’ s association with crypto is well-established , the question remains : is it being used to its full potential in the wider financial services sector ?
Understanding blockchain To gauge blockchain ’ s potential in finance more broadly , it ’ s important to first understand how it works .
A board member at the Casper Association , Ralf Kubli likens blockchain to a series of remote computers “ working together to create a trustless independently verifiable , decentralised ledger ”.
He continues : “ Every computer on the network , or ‘ node ’, can see every transaction that has ever occurred , and all of this information is encoded cryptographically , decentralised so that any participant can simply run the maths themselves , and confirm that all values are correct .”
fintechmagazine . com 101